Nigeria’s Defense Minister, Bello Matawalle, has expressed optimism that the country’s oil production will reach 1.9 million barrels per day by the end of this year.
In a recent interview, Matawalle credited the federal government’s commitment to combating crude oil theft as a key factor in boosting oil production.
Matawalle highlighted the decline in oil production, dropping to about one million barrels per day due to oil theft activities in the Niger Delta region. However, with the government’s efforts and collaborative military actions against oil thieves, production has increased. The Defense Minister disclosed that operations have been conducted, illegal panels destroyed, arrests made, and efforts to combat oil theft are ongoing.
As of October 2023, data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) indicated that the country’s crude oil production stood at 1.5 million barrels per day. Despite the progress, it is crucial for Nigeria to reach its OPEC quota of 1.7 million barrels per day by the end of the year to avoid potential adjustments in production quotas from January 2024.
The Nigerian National Petroleum Company Limited (NNPCL) has been providing weekly data on crude oil theft activities in the Niger Delta region since the second quarter of 2023. The reported cases have shown fluctuations, with the country recording 227 cases of crude oil theft between October 28 and November 3, a notable increase from the previous week’s 144 cases.
Increasing crude oil production is essential for maintaining oil revenues and preventing potential foreign exchange shortages in Nigeria. The country faces the risk of adhering to a new crude oil production quota of 1.38 million barrels per day from January 2024 if the OPEC target is not met, leading to reduced oil revenues.
